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The onset of any type of crisis has the ability to impact a large number of people. The crisis not only affects those directly involved; the actions and consequences often concern and have an impact on the stakeholders in the organization. For an organization, stakeholders are those people or organizations that have a vested interest in what has happened and are affected by the decisions that the leaders in the organization make. If the stakeholders consider a situation a crisis, then it often is and should be treated like one.

An organization has both internal and external stakeholders. Internal stakeholders are those who are often most dependent on the organization, such as employees, students, trustees, and stockholders. External stakeholders are often those impacted by the actions of the organization and could include consumers, outside agencies, and the community. In order to be successful in crisis management, the organization needs to treat its stakeholders with compassion, concern, and sensitivity.

Communication

The organization has a responsibility to protect its stakeholders and keep them informed of what is happening during a crisis. The stakeholders can become disenfranchised if they do not feel they have been kept informed or their needs have not been met. In the modern era of instant access to information and communication, organizations need to have strategic plans to communicate with all their stakeholders. Stakeholders have the ability to find out about a crisis almost instantly and often much quicker than an organization would like in a crisis situation. Communication may go out through press releases, press conferences, e-mail, Web sites, phone, texts, blogs, and social media networks such as Facebook and Twitter. People often respond emotionally in crises, so the communication needs to be clear, accurate, and precise. Depending on who the stakeholders are, different communication plans need to be devised for them.

Internal stakeholders such as employees often need very specific communication, such as how/whether to continue their job or assist in the situation. Internal communication is communication the organization may not want external groups such as the media to hear about because of sensitivity on subjects such as payroll, work schedules, leave policies, designation of essential personnel, rumor control, proprietary information, internal phone numbers and e-mail, or secure information. Internal communication is often best handled through direct contacts such as meetings, e-mails, bulletin boards, intranet, teleconferences, letters and memos, and phone calls.

Communication to external stakeholders has become essential for organizations; this often occurs through processes similar to those used for internal stakeholders but also includes the utilization of outside media. Organizations need to be available to the media, be honest with them, and be willing to disclose information about the crisis even if they cannot discuss every detail. Organizations can utilize external communications to distribute vital information, control rumors, promote understanding, serve as a warning system, give evacuation information, provide educational resources, and define responsibilities to external stakeholders. An organization needs to be proactive with its external communications to inform, answer questions, and relieve the tension of stakeholders.

Case Study: Stakeholders at Louisiana State University during Hurricane Katrina

In higher education, a college or university has many stakeholders. These stakeholders include students, staff, faculty, trustees, legislators, donors, community members and organizations, parents and other relatives of the people who may be victims, media, general public, fans, and corporate partners. During Hurricanes Katrina and Rita in 2005, the administrators at Louisiana State University (LSU) received firsthand experience about the role stakeholders play during a crisis situation.

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